expansion of the firm's production capacity, and the second project involves introducing one of the firm's existing products into a new market. Cash flows from each project appear in the following table: ${?}^1.$

a$.$ Calculate the NPV for both projects. Rank the projects based on their NPVs$.$

b$.$ Calculate the IRR for both projects. Rank the projects based on their IRRs.

c$.$ Calculate the PI for both projects. Rank the projects based on their Pls$.$

d$.$ The firm can only afford to undertake one of these investments. What do you think the firm should do$?$

a$.$ The NPV of the plant expansion project is $

$($Round to the nearest dollar.$)$

The NPV of the product introduction project is:

$($Round to the nearest dollar.$)$

According to the NPV method, which project should the firm choose? $($Select the best answer below.$)$

Plant expansion

Product introduction

b$.$ The IRR of the plant expansion project is

$\%.($Round to two decimal places.$)$

The IRR of the product introduction project is

$\%.($Round to two decimal places.$)$

According to the IRR method, which project should the firm choose? $($Select the best answer below.$)$

Plant expansion

Product introduction

c$.$ The PI of the plant expansion project is

$($Round to two decimal places.$)$

The PI of the product introduction project is

$($Round to two decimal places.$)$

According to the PI method, which project should the firm choose? $($Select the best answer below.$)$

Plant expansion

Product introduction

d$.$ If the firm can only afford to undertake one of these investments, which project should the firm choose? $($Select the best answer below.$)$

Product introduction

Plant expansion

$1$: Data Table

$($Click on the icon located on the top$-$right corner of the data table below in order to copy its contents into a spreadsheet.$)$